UK retailer The Co-operative Group has completed its GBP1.56bn (US$2.18bn) acquisition of the Somerfield supermarket chain.
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The Co-op said the deal creates a stronger fifth player in the UK grocery market with a market share of 8%.
“It is a transformational deal which cements our position as the UK’s number one community retailer and returns us to the premiership of food retailers. It is no longer the Big Four, it’s the Big Five,” said Co-op CEO Peter Marks.
“Our first priority now is to start integrating the two businesses – something that will bring real scale benefits, enabling us to provide better value to our customers. There is a strong strategic fit between these businesses and we are looking forward to creating a single business combining the inherent strengths of both Somerfield and the Co-operative Group.”
A spokesperson for Somerfield emphasised that the Co-op was taking a ‘slow and steady’ approach to integrating the businesses.
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By GlobalData“The Co-operative has made it clear that they have no intention of rushing the takeover,” the spokesperson said.
The Somerfield brand will remain in existence for between 18 months and two years, the spokesperson added.
The group’s managing director for food, Tim Hurrell, will head the enlarged food business.
